Skeena Gold + Silver
Primary ticker: TSX:SKE, NYSE:SKE, FRA:RXF
Stage of development: Development
Primary minerals: Gold, Silver
Project to promote: Eskay Creek Gold-Silver Project
Project location: Golden Triangle, British Columbia, Canada
Website: skeenaresources.com
Skeena is a leading precious metals developer that is focused on advancing the Eskay Creek Gold-Silver Project – a past producing mine located in the renowned Golden Triangle in British Columbia, Canada. Eskay Creek represents one of the highest-grade and lowest cost open-pit precious metals mines in the world, with substantial silver by-product production that surpasses many primary silver mines. The mine is targeting initial annual production of 450,000 ounces of gold equivalent metal in the first five years and has an expected 12 year mine life. Skeena is committed to sustainable mining practices and maximizing the potential of its mineral resources. In partnership with the Tahltan First Nation, Skeena strives to foster positive relationships with Indigenous communities while delivering long-term value and sustainable growth for its stakeholders.
Cash: ~CAD$127M (as of 06.30.24)
Debt: NIL
Major shareholders:
Orion Resource Partners – 14.5%
Deutsche Balaton – 10.2%
BlackRock – 9.5%
Van Eck Associates – 4.1% Tidal Investments – 3.9%
Management ownership ~6% Diluted
Financials
Management Profile
Walter Coles – Executive Chairman
Mr. Coles has served as CEO and President for several Toronto Venture Stock Exchange listed junior mining exploration and development companies over the years. Mr. Coles entered the mining business as part of an effort to develop a mineral resource discovered on family farmland in Virginia. He was previously an analyst for Cadence Investment Partners from 2005 through to 2007. Prior to that Mr. Coles worked for UBS Investment Bank in New York as a Senior Research Analyst in the bank’s High Yield Group. Mr. Coles was appointed President and CEO of Skeena in 2013 when the company’s market cap was under $1m. It was his vision to acquire and develop brownfield assets in safe jurisdictions, which led to Skeena’s acquisition of Snip and Eskay Creek. Mr. Coles holds a B.A. in Economics from the University of Richmond.
Randy Reichert – President & CEO
Mr. Reichert has 30 years of experience in the mining industry and prior to joining Skeena, was the Vice President of Operations at B2Gold Corp. where he oversaw their three international gold operations. Before his most recent role at B2Gold Corp, Mr. Reichert was the General Manager at their Fekola Mine in Mali where he was part of the development team and led the transition from development into operations. He started his career with Cominco in Canada working at various operations including the Snip Mine. He then embarked on international work with Bema Gold, Oriel Resources, and other junior companies in executive roles where he was responsible for various development projects and mining operations. Randy has led construction or development projects in Russia, Brazil, Nevada, and Kazakhstan and was General Manager during the development of the Kupol Mine in Russia with Bema Gold and subsequently Kinross. He also has experience as a consultant assisting with due diligence for mine financings for Canadian financial groups. Mr. Reichert has a BASc in Mining and Mineral Processing, an MScEng in Rock Mechanics, a Graduate Diploma in Business Administration and is a Professional Engineer.
What is your rationale for taking part in 121 Mining Investment?
To raise investor awareness of Skeena’s fully financed, high-grade Eskay Creek Gold-Silver project and provide updates as we move into development.
What recent news would you like to highlight to investors attending?
July 5, 2024 – Skeena Announces Positive Judgement by the British Columbia Court of Appeal Regarding the Albino Lake Storage Facility
June 25, 2024 – Skeena Resources Secures US$750 Million Project Financing Package
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Advance early works at Eskay Creek
Continue with timely permitting
6 Months:
Continue with timely permitting
Finalize Impact Benefit Agreement with the Tahltan Nation
12 Months:
Continue with timely permitting
Continue advancing construction and detailed engineering
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
British Columbia is viewed by some as a complicated mining jurisdiction due to relationships with the government and First Nations. In response to these concerns, the British Columbia Regional Mining Alliance (BCRMA) was formed. Skeena is a founding member of the BCRMA, a regional partnership between the government of British Columbia, First Nation and industry. This unique collaboration aims to promote BC mining and exploration opportunities internationally, with a focus on projects in the Golden Triangle of northwest BC.
What do you think makes your company such a compelling investment?
Eskay Creek is a world-class asset and one of the highest-grade open-pit gold-silver projects in the world, containing open-pit reserves of 4.6 million ounces at 3.6 g/t gold equivalent in the Proven and Probable categories. The Definitive Feasibility Study from November 2023 highlights an after-tax NPV5% of C$2.0B, 43% IRR, and a 1.2-year payback at US$1,800/oz Au and US$23/oz Ag. Skeena is fully-financed to develop Eskay Creek after securing a comprehensive US$750m financing package with Orion Resource Partners in June 2024.
What are the top 3 key investor takeaways?
1. Eskay Creek is a high-grade, open-pit asset in a stable geo-political region. Eskay Creek contains 4.6 million ounces AuEq of open-pit reserves at 3.6 g/t AuEq in the Golden Triangle of British Columbia, Canada. It will be one of the highest-grade open-pit mines in the world once in production.
2. Despite being primarily a gold mine, Eskay Creek possesses a substantial amount of silver. Eskay’s silver production will surpass many of the world’s primary silver mines, and will produce an average of 9.5 Moz Ag per year in years 1-5 of the mine life.
3. Skeena is proud to maintain a collaborative partnership with the Tahltan First Nation, and is advancing the project alongside the Tahltan as aligned stakeholders and decision makers.